Mortgage Company wanting copy of AST

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    Mortgage Company wanting copy of AST

    In one of my properties I have had the same tenant since 12 Oct 2010. Originally she had a six month AST and since then it has extended month by month by mutual consent and she pays the rent on time every month.

    My mortgage company asked for a copy of the AST and I supplied the original AST from two years ago with the above explanation.

    Mortgage company has written back saying the AST is "out of date" and are asking for a copy of the current signed agreement and that failure to do so within seven days will result in an agent visiting the property to assess the current tenancy and property condition.

    Any idea why they might be asking for this? Any suggestions?

    Thanks in advance.

    #2
    Because they are numpties who have not read the 1988 housing act which mentions that a statutory periodic tenancy under the same terms exists after the original fixed term.

    Comment


      #3
      Are you in arrears

      Comment


        #4
        Hello thanks for the replies. Yes the mortgage is in arrears, but by less than a month. The letter came out of the blue 'following a review of your account' and I am wondering how to respond.

        Comment


          #5
          Print out section 5 Housing Act 1988 and send it to them, with the relevant parts highlighted.

          http://www.legislation.gov.uk/ukpga/1988/50/section/5

          (2) If an assured tenancy which is a fixed term tenancy comes to an end otherwise than by virtue of—
          (a) an order of the court of the kind mentioned in subsection (1)(a) or (b) or any other order of the court, or
          (b) a surrender or other action on the part of the tenant,
          then, subject to section 7 and Chapter II below, the tenant shall be entitled to remain in possession of the dwelling-house let under that tenancy and, subject to subsection (4) below, his right to possession shall depend upon a periodic tenancy arising by virtue of this section.

          (3)The periodic tenancy referred to in subsection (2) above is one—
          (a) taking effect in possession immediately on the coming to an end of the fixed term tenancy;
          (b) deemed to have been granted by the person who was the landlord under the fixed term tenancy immediately before it came to an end to the person who was then the tenant under that tenancy;
          (c) under which the premises which are let are the same dwelling-house as was let under the fixed term tenancy;
          (d) under which the periods of the tenancy are the same as those for which rent was last payable under the fixed term tenancy; and
          (e) under which, subject to the following provisions of this Part of this Act, the other terms are the same as those of the fixed term tenancy immediately before it came to an end, except that any term which makes provision for determination by the landlord or the tenant shall not have effect while the tenancy remains an assured tenancy.

          Edit: under print options on that page you'll find a pdf option, which looks suitably official.

          Comment


            #6
            Thanks, will do. I have no wish to antagonise them so I will try to word it diplomatically. Thanks again.

            Comment


              #7
              Originally posted by JK0 View Post
              Because they are numpties who have not read the 1988 housing act which mentions that a statutory periodic tenancy under the same terms exists after the original fixed term.
              You are probably missing the point about the lender's requirement concerning ASTs. If landlord obtains written permission to let from a lender (which he should always do if it is not a BTL loan, which I suspect is the case here) you will not be allowed to let the tenancy become periodic. I would suggest the OP did not obtain such permission in advance of the let. If it is a BTL loan then sight of the AST would not have been an issue. Am I right?
              The advice I give should not be construed as a definitive answer, and is without prejudice or liability. You are advised to consult a specialist solicitor or other person of equal legal standing.

              Comment


                #8
                How would the LL be expected to prevent a SPT arising?

                Comment


                  #9
                  Just to clarify, this is indeed buy-to-let loan which I have had since 2003.

                  Comment


                    #10
                    Hello good evening I have had a reply from the mortgage company as follows:

                    =============================================

                    "Thank you for your letter.

                    Section 5 of the Housing Act 1988 relates to Assured Tenancies and not Assured Shorthold Tenancies, as is applicable in this case.

                    Section 20a of the Housing Act 1988 relating to ASTs confirms that in the case of a fixed term tenancy, the length of the fixed term must be stated.

                    The tenancy agreement held on the file states a fixed term of 6 months and this therefore follows that this has expired.

                    As we have not received a copy of the current Assured Shorthold Tenancy, as per my letter of xxx, I will instruct a field manager to visit the property."

                    =============================================

                    Are they correct? Does anyone have any suggestions?

                    Tenant is unwilling to commit to a further six months as they can see no advantage in doing so. I have no wish to force the issue as good tenants are hard to find for that property.

                    Comment


                      #11
                      I refer you to post #2

                      An assured shorthold tenancy, is an assured tenancy.
                      The clue is in the name.

                      Re: Sec 20a, are they stupid? The tenancy agreement they have has the length of the fixed term stated on it.
                      Allow tenants to protect their own deposits. I want free money when they do it wrong

                      Comment


                        #12
                        Originally posted by Matt63 View Post
                        Section 5 of the Housing Act 1988 relates to Assured Tenancies and not Assured Shorthold Tenancies, as is applicable in this case.
                        Section 5 does apply to ASTs.

                        Refer them to s.19A Housing Act 1988

                        19A Assured shorthold tenancies: post-Housing Act 1996 tenancies.

                        An assured tenancy which—
                        (a) is entered into on or after the day on which section 96 of the Housing Act 1996 comes into force (otherwise than pursuant to a contract made before that day), or
                        (b) comes into being by virtue of section 5 above on the coming to an end of an assured tenancy within paragraph (a) above,
                        is an assured shorthold tenancy unless it falls within any paragraph in Schedule 2A to this Act.


                        Section 20a of the Housing Act 1988 relating to ASTs confirms that in the case of a fixed term tenancy, the length of the fixed term must be stated.
                        S.20A is simply about the LL's obligation to provide a statement of the terms of the tenancy, if the tenant makes a written request for it. It has no relevance to this discussion.

                        The tenancy agreement held on the file states a fixed term of 6 months and this therefore follows that this has expired.
                        Yes, it has expired, and then it was replaced by a statutory periodic tenancy under s.5. *sigh*

                        I suppose, if the mortgage company continue to be idiots, you could create a contractual periodic tenancy on exactly the same terms as the statutory periodic tenancy.

                        Comment

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